Flipping houses for profit requires
three simple components. If you’re
just start flipping, you are focus
from generating leads to meeting
with panic home sellers and marketing
properties to wholesalers. After a
while, handling multiple roles will
become exhausting! Professional real estate
investors require training, coaching, field training from
fellow Canadian real estate experts.
As your flipping houses for profit
continues to grow, you’ll want to
hire an entourage of experts to help
take most of the responsibilities.
There are several essential components:
acquisitions, due diligence and
assignment of the contract.
Acquiring for pennies on a dollar
Acquisitions simply focus on acquiring
the property at deep discounted price.
Our focus is not only fixer upper
properties but those who are in
panic state who needs cash now.
This is done by generating convertible
leads to an acceptable offer.
Communicating with highly panic home
sellers focusing on their needs is
the key to close more deals.
Here are three key skills that
will make you successful in acquiring
real estate deals pennies on a dollar.
1. Analyzing profitable deals for Flipping houses for Profit
You must know how to analyze deals
very quickly. One of the very first
steps to becoming a successful real
estate investor is learning how to
run comps and analyze leads correctly.
Using all the tools available from
tax bill to assessment values can
provide you precise information.
Even a year old appraisal can add
value to determine the current
market value.
2. Building Rapport with Panic Home sellers
Our role as professional real estate
investors is to help panic home sellers
get out of distressful situations.
In order to get our sellers to open up
about these situations, we must genuinely
build rapport. Be careful if you start
appearing to be snake oil salesperson.
Listen carefully and never interrupt while
the panic sellers are blaming others.
Being a great listener will get you more deals.
3. Sensing Urgency Motivation
Home sellers will call you to sell their
properties expecting the highest value.
They may not have time and cash in their favor.
How quickly they need to move out will determine
their panic value. If the home owner is
facing foreclosure or eviction within few days,
their exit strategy is timing not the price.
4. Understanding Purchase and Sale Agreements
Purchase and sale agreements are standard
documents. You must have few clauses to protect
you in case you are unable to flip before closing.
Use simple one-page letter of intent for panic sellers.
We highly recommend consulting with a lawyer to
help draft up all paperwork. Standard letter of
intent to purchase real estate, assignment forms
and purchase and sale agreements may require
additional addendum.
Assignment (FLIP) of the contract
Flipping houses for Profit
Once you have a property under contract you
like to flip or assign the agreement to a
cash buyer for a fee. You need to have all
ducks in line and time is in the essence.
Here are three key skills that will make
you successful in flipping houses for profit.
1. Building a Rapport with Cash Buyers
Real estate is all about relationships with
people. Being fully transparent in flipping
houses will get you awesome reputation.
Cash buyers need crystal clear information
of the subject property. They will obtain
an appraisal, home inspection and quote
from general contractors. Cash buyers
must receive the highest amount of
profit in each deal.
2. Magnetic or Blind Marketing
Flipping your property under contract
can be challenge. Co- wholesaling, using
realtors, joint ventures are the best
solutions to assign the property as
soon as possible. Always sell these
properties far below its current
market value. Start building a list of
real estate cash buyers. Join local
REI club to expand your business horizons.
Be precise with your approach to the
cash buyers. Keep it very simple and
straight to the point. Let them know
what you paid for it. How much you
want your flip or assignment fee.
What is the current and after repair
market value based upon the facts.
If you happen to have three estimates
from contractors, hand them over.
Cash buyers may not have time to
do basic due diligence.
3. Understanding assignment procedures
It’s critical that you understand various
wholesaling closing strategies
(assignments, double closing,
the simple close) because you’ll need
to communicate them in your purchase
agreements with the investor-buyers
interested in buying your properties.
Understanding assignment (Flip Before closing) process
Assignment forms shall be prepared
by real estate lawyer. Preparing any
kind of contract without legal advice
can be lethal. Ask your lawyer to prepare
and execute non-disclosure non
circumventing agreements.
Cost of legal expenses is far less
than the losses you could have otherwise.
Remain FOCUS on your top priorities
Remain laser focus on putting deep
discounted deals under contracts.
Finding and nurturing healthy business
relationships with fellow investors and
coaches. There will be times when you
must close multiples deals at a time.
You will require help from fellow
investors in form of joint venture
or hard money.
Organization will be critical because
you’ll be handling all of the paperwork
for each and every transaction.
You want to close fast, you must
maintain organization to ensure
each deal is closed properly and in a timely fashion.
Here you have full breakdown of the real
estate flipping houses for profit
right at your fingertips!
